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Does increasing a university or community college's involvement in tech-based economic development - through technology incubators or early-stage capital programs - detract from the nonprofit, educational purpose of the institution? Fortunately, for many state and regional TBED strategies, the Internal Revenue Service (IRS) says no. The IRS recently released a ruling affirming the nonprofit status of a college foundation planning to unveil a new high-tech incubator and pre-seed capital fund.

Promoting the policies and harnessing the habits that will make innovation central to a Southern way of life requires a fundamental shift in the approach to knowledge itself, says the latest report by the Southern Growth Policies Board.



The report, Innovation with a Southern Accent: The 2006 Report on the Future of the South, offers recommendations for 13 states and Puerto Rico to transition the region into a more knowledgeable, innovative and prosperous South.

[Editor's Note: SSTI is excited to welcome Phillip Battle to its staff as a policy analyst. The author of this article, Phil recently received his Master in Public Affairs degree from the LBJ School at the University of Texas at Austin. His area of research interest is technology policy and economic development.]

The U.S. Bureau of Economic Analysis (BEA) recently released advanced real gross state product (GSP) estimates for 2005. According to the data, real GSP grew in all 50 states and the District of Columbia from 2001-2005. Western states dominated the lead in U.S. economic growth, with Nevada incurring the largest increase in real GSP growing from $75.1 billion in 2001 to $96.6 billion in 2005 -- a 28.56 percent change.

The fifth installment to Walkin' the Tech Talkin' Gov Walk (see the April 17, May 8, June 5 and June 12 issues of the Digest) covers the outcome of the 2006 Massachusetts legislative sess

Four short years ago, 37 states were in fiscal crisis, many making several rounds of deep spending cuts to cope with the most dramatic reduction in revenues in 20 years. In all, more than $15 billion were shaved from state budgets. Twenty-one states experienced negative revenue growth in FY 2003, forcing even deeper cuts. The fiscal winter of '02-'03 slowed many states' strategies for supporting growth in their knowledge-based economies.

A $1.46 million grant from the Economic Development Administration to the Sirti Foundation is making possible a $3 million loan fund to technology companies within a 10-county region of Eastern Washington. The program provides another example of the non-traditional use of EDA funds to support tech-based economic development strategies. In addition, the deal structure may serve as a model to help other public agencies encourage TBED activities typically outside the scope or possibility of many public entities.

Despite industry claims to the contrary, the recovery of the U.S. information technology (IT) sector has not created enough new jobs for IT workers, according to a new report from the Washington Alliance of Technology Workers. Information Technology Labor Markets: Rebounding, but Slowly reveals that the recent increase in IT spending has not led to a full recovery in the labor market.

The federal government distributed $26.7 billion to universities in the U.S. in fiscal year 2003 - a 9.4 percent increase from the FY 2002 total of $24.4 billion, a recently released National Science Foundation report reveals. Federal Science and Engineering Support to Universities, Colleges, and Nonprofit Institutions: Fiscal Year 2003 details federal science & engineering (S&E) activities to the nation's institutions of higher education.

Southern Growth Policies Board, in partnership with the National Institute of Standards and Technology (NIST), has designed a survey to identify the needs of small and medium-sized manufacturers in the area of information technology. The 20-question survey takes only a few minutes to complete and the results will be used to develop new programs to help small and medium-sized manufacturers.

Nearly $300 Million Tagged for TBED
It took moving into a special session and negotiating a late deal between lawmakers and Gov. Brad Henry last week for the Oklahoma legislature to pass several bills related to the state's budget for fiscal year 2007, which begins this weekend.

Making the single largest TBED related investment in its history, the Arizona legislature approved and Gov. Janet Napolitano signed the state's FY 2006-07 budget, which includes $35 million for the new Arizona 21st Century Competitive Initiative Fund. HB 2477 is the successor in concept to the Innovation Arizona fund proposed by Gov.

Summer is road construction season for much of the country. A necessary inconvenience for maintaining our transportation system because connectivity is a fundamental requirement for commerce. For two parties to exchange goods, services or knowledge, they have to be able to find each other. The location and capacity of transportation infrastructures - sea ports, railways and interstate highways - very much determines the opportunity for and extent of economic growth.

A new National Science Foundation (NSF) report shows graduate enrollment in S&E increased by 4.2 percent from 2002, reaching a record high of 474,203 students in fall 2003. Graduate Students and Postdoctorates in S&E: Fall 2003 presents the distribution of graduate students in science and engineering (S&E) by academic fields, demographics, institution and state. Data contained in the report represent estimates of S&E enrollment from 12,261 graduate departments at 591 institutions in the U.S. and outlying areas.

SSTI, a growing nonprofit organization serving the nation's tech-based economic development (TBED) community, seeks a policy analyst to research and prepare reports, articles and papers on TBED and assist with SSTI events. Excellent research abilities, strong writing and verbal skills and solid understanding of government are required. Candidates must have ability to work independently or as part of a committed team and be dedicated to creating a quality product.

This week's Funding Supplement will be sent on Thursday, June 29. With the Fourth of July holiday, neither the SSTI Weekly Digest or Funding Supplement will be published next week.

Maine Gov. Mark Baldacci has unveiled a new handbook intended to help communities to capitalize upon their cultural resources to spur economic growth. Maine's Creative Economy Community Handbook: Maine State Government Resources for Communities offers advice for community leaders interested in building a creative and dynamic workforce. The guidelines it gives for designing a strategic plan could benefit communities across the country interested in similar initiatives.

As the authors of the recent Swedish report, The Internationalization of Corporate R&D, pointed out, industrial R&D may increasingly be found concentrated around public and private research institutions with strong research capabilities related to the specific corporation's interests.

Proponents for a higher skilled workforce may be concerned with troubling new statistics regarding high school graduation rates. A new report from the EPE (Editorial Projects in Education) Research Center and Education Week shows that more than 30 percent of the nations ninth-graders fail to go on to graduate from public high schools.

Due to the Christmas and New Year's Day holidays, the next issue of the SSTI Weekly Digest will be published during the week of Jan. 8, 2007. Publication of the Funding Supplement also will resume in January, following this week's issue (Dec. 18, due out by Thursday).

Gov. Jon Huntsman Jr. released last week his fiscal year 2007 budget request, providing a substantial boost in funding for the Utah Science, Technology and Research (USTAR) Initiative. In FY 2005, the legislature appropriated $4 million to fund the initial phase of the initiative. This year, the governor is recommending $62 million for infrastructure and programs.

Over the last 15 years, few states have been as focused on investing in higher education to encourage sustainable economic prosperity as Georgia. At SSTI's 9th Annual Conference on Oct. 19-21, 2005, presenters made the case that the southern state is a national leader in American higher education.

An increasing number of states are realizing the potential role renewable energy can play in their tech-based economic development strategies (TBED) and future growth.

Britain’s Pre Budget Report 2005, released Dec. 5, calls for the United Kingdom to double spending for stem cell research to £100M within the next two years and launch a number of new initiatives to sustain innovation and science.

In China, leaders of the rapidly growing nation dogged by soaring energy needs and unrelenting pollution problems made a commitment to double the nation’s use of renewable energy resources within the next 15 years.